Cheers Invotrade, I tend to agree we need some indication of what they are pulling out the the ground, their value and costs of extraction as well as chewing into a bit of that debt ... I still like though and hope that we will have more news of these things when the anticipated September sales are annouced!
The following came courtesy of KRK, on another channel, from news coverage in the Australian this weekend - I trust he is not unhappy that I share... Regards all, Donna
"Delving into diamonds"
THIS column has tended to steer clear of the diamond explorers due mainly to the fact this sector has, if you are looking for the most efficient way to make a losing resources share bet, an unenviable record.
So we should record a company getting into production. DiamonEx (DON) has completed commissioning its plant in Botswana and recovery of stones has begun.
As the company pointed out in a recent presentation, there are fewer than 20 diamond producing companies and fewer than 20 hard rock mines in the world and 90 per cent of world production is controlled by four companies: Rio Tinto (RIO), BHP, Alrosa (the Russian producer) and De Beers.
The remaining 10 per cent of diamonds come from small and mid-cap companies and most are small.
With its capitalisation of $34 million as of Friday, DiamonEx will be ranked No3 in the world, after two London listed companies Gem Diamonds (worth $1.25 billion) and Petra Diamonds ($425 million). Gem, incidentally, paid $US249 million last year to acquire Kimberley Diamond Co and its Ellendale mine in Western Australia.
Sydney's Stock Resource has put a buy at up to 20c on DiamonEx, the stock closing on Friday at that level."
(source - unfortunately I could not get this link to work! http://www.theaustralian.news.com.au/story...-18261,00.html)
DON Price at posting:
19.0¢ Sentiment: Buy Disclosure: Held
